The Bad, the boom and the bust: Profit warnings over the business cycle

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• 作者：Raymond A.K. Cox^a ; ^rcox@tru.ca (Professor of Finance) ; Ajit Dayanandan^b ; ^{adayanandan@alaska.edu} (Associate Professor of Finance) ; Han Donker^b ; ^{hadonker@alaska.edu} (Professor of Accounting) ; John Nofsinger^b ; ^{jnofsinger@alaska.edu} (Professor ; Seward Chair in International Finance)
• 关键词：Profit warnings ; Earnings warnings ; Business cycle
• 刊名：Journal of Economics and Business
• 出版年：2017
• 出版时间：January-February 2017
• 年：2017
• 卷：89
• 期：Complete
• 页码：13-19
• 全文大小：368 K
• 卷排序：89

文摘

We examine the stock price reaction of profit warnings over the business cycle. Profit warning reactions are more negative than unwarned earnings surprises. Investors reaction to profit warnings is significantly more negative during economic expansions compared to contractions. Our results are robust to event window size, asset pricing model choice, and regression specification.